Anticipated Financial Results for Take-Two in the First Quarter of 2026
Take-Two Interactive Software, the popular video game publisher known for franchises like Grand Theft Auto, NBA 2K, and Borderlands, has announced its Q1 earnings results for the fiscal year 2026. The company reported a notable increase in Net Bookings, Earnings Per Share (EPS), and operating income, despite a year-over-year (Y/Y) decrease in revenue.
Financial Highlights
The company reported a 17% increase in Net Bookings to $1.42 billion for Q1 FY2026 (ended June 30, 2025), along with raised full-year guidance to $6.05–$6.15 billion in Net Bookings. Despite this revenue growth, the company posted a GAAP net loss of $11.9 million, which is a substantial improvement from the previous year's $262 million loss. Operating expenses remain high, with Research and Development (R&D) at $261.4 million and total operating expenses at $923.4 million.
The reported EPS for Q1 earnings is $0.42, representing a Y/Y increase of 59.2%. This significant growth in EPS indicates positive trends in profitability. The operating income for the quarter stands at $345 million, and the cash and cash equivalents are $1.02 billion. The gross margin for the quarter is 86.1%.
Beating Expectations
Analyst consensus expected revenue of about $1.28 billion, up 5.4% Y/Y, with EPS forecasted at $0.26, representing a 420% increase from the previous year. However, the company's actual reported EPS notably beat expectations at $0.61 versus an estimated $0.29, indicating significant earnings growth and positive surprise in profitability metrics.
Contributing Factors
The continued success of Grand Theft Auto V, which has sold over 215 million units, contributes to the revenue base. International markets accounted for 41% of Net Bookings, slightly up from the prior year. Continued updates and new editions in well-known franchises support steady revenue and engagement growth.
Upcoming Releases
The company continues to invest heavily in product updates and upcoming releases like Mafia: The Old Country, NBA 2K26, Borderlands 4, and the highly anticipated Grand Theft Auto VI set for 2026. These releases are expected to further boost the company's financial performance.
Outlook
In summary, over the past year, Take-Two has demonstrated strong revenue growth and improving profitability, despite ongoing high operating costs. The company’s earnings are trending positively, supported by franchise stability and anticipation around major game launches. This recent financial performance is optimistic and sets an upward trajectory for the business in the near term.
Take-Two Interactive Software (NASDAQ: TTWO) will announce Q1 earnings results on Thursday, August 7th, after market close. Investors and gaming enthusiasts alike will be eagerly awaiting further updates on the company's financial performance and upcoming releases.
[1] Take-Two Interactive Software Reports Q1 FY2026 Results
[2] Take-Two Interactive Software Q1 FY2026 Earnings Call Transcript
[3] Take-Two Interactive Software Q1 FY2026 Earnings Preview
[4] Grand Theft Auto V surpasses 215 million units sold
[5] Upcoming Take-Two Interactive Games
- Take-Two Interactive Software's Q1 FY2026 earnings demonstrate that the company's business in the gaming industry is financially sound, as evidenced by the 17% increase in Net Bookings and the 59.2% increase in Earnings Per Share, indicating positive trends in profitability.
- Despite a year-over-year decrease in revenue, Take-Two Interactive Software is strategically investing in upcoming releases such as Mafia: The Old Country, NBA 2K26, Borderlands 4, and Grand Theft Auto VI, which are expected to further boost the company's financial performance in the future.
